Friday, November 20, 2009

Predictors of Startup Success

Here's a roundup of some predictors of startup success.
Determinants of new firm success:

"In addition to a large firm size right from the start, good preparation, having a business partner, and some years in salaried employment also enhance firm growth."
Intellectual capital and business start-up success:
"...the human capital of the entrepreneur (i.e. education, business experience and level of motivation), organizational capital (i.e. firm capacity to adapt quickly to changes and the ability to implement successful strategies), and relational capital (i.e. development of productive business networks and an immediate access to critical stakeholders)... seem to be related positively to venture performance."
Social interaction: A determinant of entrepreneurial team venture success:
"The quality of the social interaction within entrepreneurial teams is crucial for the new venture success."
Predicting new venture survival:
"New ventures that survived were more likely to have: (1) entrepreneurs who gained knowledge and ability during the founding process; who devoted greater efforts to (2) dealing with suppliers; (3) analyzing potential new entrants and who (4) devoted less time to determining the identity of the business; businesses that had (5) 'fundable' resource requirements (6) focused on products or services that were designed or produced to order; and (7) were in high growth industries."